I agree. But its a big correction and one based on concerns in the US around credit squeeze as a flow on from the failures in the sub prime mortgage market. Lets just hope that credit squeeze doesn't eventuate and result in profit downgrades in the US across the board. If that happens then the global economy will suffer to the same extent.

I think the credit squeeze argument is over-cooked, but maybe that's just the bull in me coming to the fore.

Cheers,
Michael.

Goal: Financial independence by 2015Plan: Focussing on Resi property development in the short term to build in equity and improve cash flow.Status: Development site procured and DA approval achieved. Intend to commence construction mid-2009.

Peter Spann said interest rates are going to run hard by 2010, which will result in a recession.

This is where all these highly geared strategies promoted on this website will crumble.

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And, of course, because Peter Spann said it, means its going to happen right?!

Not sure about yours, but my crystal ball broke when the genie got a bit raucus with the fairies at the bottom of the garden...

My recommendation, as always, is invest for the long term in quality assets and watch your exposure. If you're highly leveraged then keep a cash buffer up your sleeve to feed the beast through a cyclical downturn. Never invest to the point that you're exposed to a correction and have to sell down your assets to feed it.

But hey, I know there's traders out there that love to try and pick tops and trade profits through the pullbacks. Tried that, not my game, too hard to move big numbers around when there's lenders involved. Now I'll just ride it out unless it all goes mega-crazey and PERs go out the window like in the dot-com crash. But that's why I say buy "assets". A good test of this is its earnings potential which for stocks means PERs. Don't buy the penny dreadfuls or the spec stuff with crappy PERs.

Cheers,
Michael.

Goal: Financial independence by 2015Plan: Focussing on Resi property development in the short term to build in equity and improve cash flow.Status: Development site procured and DA approval achieved. Intend to commence construction mid-2009.

According to her the highest margin lenders are St George and Suncorp both at an LVR of 75% so i'm now in the process of signing up with St George as Comsec don't accept NI as a security.

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BT now offers 75% on the wholesale fund. Presumably also on the retail fund.

N

Nigel

This is a general comment only and does not constitute advice. Before making legal or financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

BT now offers 75% on the wholesale fund. Presumably also on the retail fund.

N

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I'm with ANZ Margin Lending and they offer 75% on Navra too.

Cheers,
Michael

Goal: Financial independence by 2015Plan: Focussing on Resi property development in the short term to build in equity and improve cash flow.Status: Development site procured and DA approval achieved. Intend to commence construction mid-2009.

I'm not even checking my geared funds - perpetual/colonial/amp - but I'm foolishly tempted to up my margin loan account and invest more into the geared funds.

I am however worried about my Australian Unity $100k - they froze the fund several weeks ago, and they have yet to update the performance returns - the latest figures are at 31 May - jeezus how long does it take to prepare the June month accounts - we are now into August.

The good news !!. This crash surely will do wonders for a recycle into residential real estate, particularly into NSW (at last).

Im not a tremendous fan of the term "correction" because it assumes there is a correct price for a purely arbitrary market!
I do agree that there will be some bounce back in the positive direction, but I think such a big hit today after such a bad week last week will make a lot of people very tentative and probably keep things on shaky ground for the forseeable future. Every time there is a hiccup people will think "the sky is falling!".
I personally think it will be a case of 1 step forward, 9/10ths of a step back for a while
Will be very interesting to see how Wall St does tonight and how our market reacts to it tomorrow.